The document provides an overview of the forex market, including: 1) Forex is the largest market in the world with major currencies traded 24/7, allowing traders to choose their hours. It offers high leverage and liquidity to earn from rising and falling markets. 2) As an over-the-counter market without a central exchange, it has no common regulator and increased risks of fraudulent firms. Trading sessions overlap between Asia, Europe, and the US. 3) Major currency pairs include majors (USD pairs), crosses (non-USD pairs), and exotics (pairs involving emerging markets currencies). Key terms like bid, ask, pip, spread, leverage and position types are also defined

1. Forex for Starters

2. Market Overview Forex is the largest Market in the world All the main Currencies are actively traded 24 hours a day You get the liberty of selecting your trading hours You are highly leveraged Forex market is highly liquid You can earn in both rising and falling market

3. Over the Counter There is no centralized trade exchange Market is made up of all the participants There is no common regulator Heavy competitive pricing environment Increased chances of fraudulent firms to enter Firm is your direct contact

4. Trading Sessions Asian Session European Session US Session US & Europe Overlap Europe & Asia Overlap 19:00 to 04:00 EST 02:00 to 12:00 EST 08:00 to 17:00 EST 08:00 to 12:00 EST 02:00 to 04:00 EST

5. Majorly Traded Currencies New Zealand Dollar (Kiwi) NZD Canadian Dollar CAD Australian Dollar (Aussie) AUD Swiss Franc (Swissy) CHF Japanese Yen JPY Sterling Pound GBP Euro EUR US Dollar USD

6. Currency Pairs Majors : Any major currency quoted against USD is called majors. EG: EURUSD, GBPUSD etc. Crosses : All Major currencies except USD quoted against each other. EG: EURJPY, GBPCHF etc. Exotics : All pairs where the currency of a rising economy is quoted against a major currency. EG: USDINR

7. Glossary Bid : Price at which the currency is sold. It is the left side of the currency quote Ask : Price at which the currency is brought. It is the right side of the currency quote PIP : Commonly known as percentage in point. It is the change in value of the last decimal of the currency. EG: EURUSD = 1.487 7 /1.487 9 . here 1 pip = 0.0001. thus, it is the last decimal of the currency value. It is used to measure the change in currency value. Note some currencies like USDJPY = 88.9 4 /88.9 8 has 2 decimals. Hence, here 1 pip = 0.01

8. Spread : Difference between the Ask & Bid price. Remember, Ask price is always greater than the Bid price. Fundamental Analysis : Analysis made based on news, political & economical factors, economic events etc. Technical Analysis : Analysis made based on charts and technical indicators like moving averages, MACD etc. Standard Lot : 1 Standard lot is 100,000 units of base currency. 0.1 lot is 10,000 units. Leverage : It is a credit line given for trading. EG: 1:200 leverage means if you deposit $100, then you get to trade with $20,000

9. Long : When you enter a trade by buying the base currency thinking its value will appreciate. Short : When you enter a trade by selling the base currency thinking its value will depreciate Stop Loss : In order to minimize your loss, you place a stop, which means if the market goes against you, that is the maximum amount of loss you are willing to take. Take Profit : When market is I your favor, you book your profit at a specified amount. One Cancels Other : In this case if either of the Stop Loss or Take Profit condition is met, trade automatically closes.

10. Volatility It is the fluctuation in the changes of the prices. The table in the following slide gives an example of the average fluctuation of the currency pairs at different trading sessions. We can measure the difference between the highs and lows for specified time intervals or we can measure the difference between previous close to current high and low or previous close to current close etc. You can customize your volatility indicator the way you like. The following table shows fluctuations of highs and lows.

12. Trading EUR/USD Base Currency Counter Currency Remember : A currency is always traded in pairs. You buy one against the other. Hence you can make money in both rising and falling market. Because if value of one depreciates against the other, the value of other automatically appreciates.

13. EUR/USD 1.4897/99 Sell Buy Spread: 2 pips Long Position: Buy & Sell Short Position: Sell & Buy Back

14. EG: if you go short on EUR/USD at 1.4897/99, and after 1 hour, the value of EUR/USD goes to 1.4890/92, you’ve made a profit of 7 pips. Lets say if you put a stop loss at 1.5003 and a take profit at 1.4890, then whichever of the following events occur first, your trade will be closed automatically.

15. Conclusion This presentation should help you get started with the trading. Kindly refer to the previous presentation for managing your trades. Furthermore you’ll also have more presentations on some intermediate and advanced modules to help you gain a better grip of the Forex market. For better results, kindly log on to www.fxsalt-in.com open an account and start practicing on the Demo. Meanwhile you can always reach me at [email_address] for any clarification or assistance.

16. Thank You